Global Small-Cap Equity Fund

December 31, 2025

Market Context

• The global small-cap market, as measured by the Morningstar Developed Markets Small Cap Index, rose 11.8% in Canadian dollar terms in 2025. 
• Most sectors experienced positive returns though performance of consumer-related companies was more muted. 

Portfolio Specifics

• The portfolio is invested in 48 companies across the U.S., Europe, Japan, the U.K., Australia, and other developed markets, maintaining diversified exposure within the global small- and mid-sized companies. 
• The fund rose 8.6% during the year. Performance benefited from changes made following earlier weakness, particularly within U.S. and financial holdings, while select consumer-oriented positions weighed on results. 
• Financial and industrial holdings were the strongest contributors. Japanese internet bank RAKUTEN BANK and Italian bank FINECO BANK both gained over 35% in the year. Swedish aerospace company SAAB and German warehouse machinery provider KION grew over 100%. SAAB was sold as the manager concluded the stock was starting to get expensive. 
• There were also some sore spots. Cloud-based workflow provider WORKIVA, identity verification specialist FIRST ADVANTAGE and eldercare and home service provider CHEMED experienced difficult years.  
• Given the dispersion in market returns this year, the manager, TimesSquare Capital, used the opportunity to replace underperforming holdings. FIRST ADVANTAGE, CHEMED, WILLSCOT (U.S. construction), SOPRA STERIA (French technology) and STEADFAST (Australian insurance broker) were sold. Proceeds were used to purchase INTAPP (U.S. cloud software), ONESTREAM (enterprise finance technology) and add to JFROG (U.S. software), WARBY PARKER (eyecare).

Positioning

• The fund invests in businesses with a clear competitive edge that offer products and services the world needs. A record of consistent sales and profit growth is important, along with a management team that has experience and integrity.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Important information about the Steadyhand funds is contained in our Simplified Prospectus. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.